Yesterday the price rose contrary to my expectations. This well illustrates that it is difficult to predict price movements based on a short-term chart. Bitcoin is back to the pattern I mentioned in yesterday’s analysis and that means we are now at a crossroads. If any of the next 4-hour candles close below $37,850, it will favor the bears and raise expectations for lower prices. If Bitcoin maintains trend strength and we see new upward momentum, all I can say is that the largest cryptocurrency is in a hugely strong uptrend and approaching the $40,000 mark.
The 4-hour chart: the next step is crucial
As you can see, Bitcoin is back above $38,000 and yesterday we were up a few percent. An interesting move in my opinion. We are seeing endless higher lows, which only indicates that Bitcoin is being systematically bought during every correction so far.
This new way of price promotion takes some getting used to. After years of downward trends, we have become accustomed to the price movements that characterize this cycle. Not only is the price rising significantly, indicating that we are out of the bear market, but the structure of the trend is completely different.
Regardless, it is now clear that Bitcoin is now facing two major price levels, as shown in the chart above. Both will set the trend in the coming days. So we are at a very important moment.
If the price breaks above $38,500 and a candle closes above it, the uptrend is confirmed and 40,000 is really just a matter of time. However, a close below 37,850 would have the exact opposite effect. The last hope for the bulls is to form a higher low, but if the price continues to clear the lows, the bullish structure will end. So keep an eye on it!
Bitcoin Dominance: Is This the Top?
Regarding Bitcoin’s performance compared to other cryptocurrencies, it is important to consult the BTC.d chart. This is just over 53%, indicating that Bitcoin still dominates by a wide margin, controlling more than half of the entire crypto market.
On the daily chart we now see a head and shoulders pattern in action, which is bullish. This is a price target of approximately 53.5%. This means that the price in the dominant position can rise slightly before a direction needs to be determined. This means better performance of Bitcoin compared to altcoins. But 54% is a level of strong resistance, so the pressing question now is: was 54.3% the absolute maximum or will Bitcoin remain king and will we continue to rise?
Source: BTCDirect
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
